Amplats signs Zimbabwean empowerment deal

The world’s biggest platinum producer Amplats, has signed a deal agreeing to sell 51 per cent of shares in its Zimbabwe mines to locals. Amplats is the first mining corporation to comply with Zimbabwe’s stringent empowerment rules, the government hopes it will be easier to persuade other mining companies to follow suit. Zimbabwe Empowerment Minister […]

The world’s biggest platinum producer Amplats, has signed a deal agreeing to sell 51 per cent of shares in its Zimbabwe mines to locals.

Amplats is the first mining corporation to comply with Zimbabwe’s stringent empowerment rules, the government hopes it will be easier to persuade other mining companies to follow suit.

Zimbabwe Empowerment Minister Saviour Kasukuwere said: “We are pleased that they have fully complied with the expectations of our laws. They are way ahead of the others.”

The shares are to be sold at a discount of $280 million, which the government claims is “in recognition of the sovereign ownership of resources by the people of Zimbabwe”.

Workers, a community trust and local investors will be issued with shares by the government, and will pay them off through dividends over the next 10 years.

Labour unrest across South Africa’s mines has made Zimbabwe more attractive to mining companies.

Zimbabwe’s Finance Minister Tendai Biti, showed his confidence in Zimbabwe’s mining industry this week by raising his growth forecasts for mining output from 15 per cent to 16.7 per cent.

President Mugabe is planning to put empowerment at the centre of his election campaign next year.

However, Obert Gutu, Deputy Justice Minister and MDC Senator said those behind the empowerment drive were targeting “well-run corporations for their own greedy and corrupt accumulation of personal wealth”.